Which Is a Reason to Use the Net Method to Record

question 20

Multiple Choice

Which is a reason to use the net method to record purchase discounts?

• A)Cost-benefit factor is greater for the net method.
• B)Reporting "purchase discounts lost" signifies inefficient business practices.
• C)Given the materiality of the amounts involved,the net method is used.
• D)The net method is technically superior to the gross method.

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